The cryptocurrency market has crashed in the last few days. This fear brought about a potential downtrend as well as buying opportunities. However, the two altcoins remain overbought on the daily Relative Strength Index (RSI). According to crypto analyst Vinicius Barbosa, this is a situation that investors should see as a sell signal.
CoinGlass data gives a sell signal for 2 altcoins!
cryptokoin.comAs you follow from , the market has seriously lost ground this week. However, there were those who challenged this decline. Interestingly, most cryptocurrencies moved from a strong or overbought position to a neutral or weak RSI position in just a few days. This occurred amid bearish technical indicators such as price action, disappearance of support levels, and declining exchange volume.
Still, some assets sailed against the wind, making meaningful gains. Additionally, these cryptocurrencies maintained a high Relative Strength Index. CoinGlass’s momentum indicator indicates an overbought situation for 2 altcoins. This indicates that cryptocurrencies will likely pull back at some point.
There is a sell signal for Jito (JTO)
Jito, in particular, is overbought on four different timeframes following a 17.64% gain in the last 24 hours. The token is currently trading at $5.24. All short-term price charts show an RSI above 70. Additionally, the sell signal confirms itself with a neutral long-term momentum based on JTO’s weekly RSI at 54.13. This indicates a short-term pump that is not sustainable. It also shows that the cryptocurrency lacks momentum for a continuation.
Sell signal coming from Bella Protocol (BEL)
Low-cap Bella Protocol is another altcoin with a potential sell signal at these prices. Notably, most of BEL’s RSI time frames indicate overbought presence, including three above the 80 mark. The Token’s daily Relative Strength Index is above Jito at 76.32, indicating a possible trend reversal. At the time of writing, the altcoin was trading at $1.44. Additionally, the token increased by 43.75% in the last 24 hours. Therefore, investors may opt for an imminent profit-taking strategy considering the expected volatility of a cryptocurrency with a market cap below $100 million.
However, having an overbought RSI condition does not guarantee a price decline in the coming days. Understanding this extreme strength indicator is vital for traders looking for sell signals. Cryptocurrencies are highly volatile assets. Therefore, it is possible for everything to change in the blink of an eye.
The opinions and predictions in the article belong to the analyst and are definitely not investment advice. cryptokoin.com We strongly recommend that you do your own research before investing.
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